Washington, DC – The Treasury Department’s 2024 national illicit finance strategy focuses on closing regulatory gaps to combat money laundering in the American banking system. Released on May 16, 2024, the strategy emphasizes the ongoing efforts to strengthen the country’s anti-money laundering and countering the funding of terrorism framework. The Department outlined its 2024 “National Strategy for Combatting Terrorist and Other Illicit Financing,” highlighting its commitment to fighting illicit financial activities, particularly in the cryptocurrency space.
The strategy includes 15 supporting actions aimed at focusing U.S. government efforts in key sectors such as evaluating AML loopholes, updating frameworks for virtual assets, and enhancing risk-focused supervision and enforcement. Key priorities for the Treasury Department’s strategy in the coming year include bridging legal and regulatory gaps, advancing a risk-based AML/CFT framework, improving operational effectiveness in law enforcement and international cooperation, and utilizing technology to combat illicit finance.
An important aspect of the strategy is the emphasis on using automation and innovation to enhance the country’s ability to prevent illicit financial activities. By leveraging technology and strengthening regulations, the Treasury Department aims to make it more difficult for illicit actors to exploit the financial system for illegal operations. However, the implementation of these strategies may also impact the economy, requiring financial institutions to adapt to new compliance controls.
While the advancements in technology and regulations may improve national security and economic prosperity, there are concerns about potential violations of privacy rights. Balancing security measures with privacy concerns is crucial to ensuring a practical and ethical solution to combat illicit financial activities. The Treasury Department’s 2024 strategy signals a significant step forward in the fight against illicit money, promoting responsible technology growth and collaboration with private sector compliance systems to innovate and automate efforts in disrupting illegal financial operations.
In conclusion, the Treasury Department’s comprehensive plan outlines the next steps in reducing illegal financial activity through a combination of advanced technology, strong laws, and strategic partnerships. By prioritizing key areas and promoting responsible technological advancements, the Department aims to strengthen the financial system and enhance national security in the ongoing battle against illicit finance.